Page 34 - FINAL CFA I SLIDES JUNE 2019 DAY 8
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Straight line                                                                             Session Unit 8:
                                                                                                        28. Inventories








             Double-declining balance








                                                         tanties




              Units of production












            Useful and salvage values, p.219





             Useful lives                     Longer estimate of useful life, decreases depreciation and increases earnings

             Salvage values                   Higher estimate of salvage value also decreases deprecation and increases earnings


                                                      Both are change in an accounting estimate, p.220, is put into
                                                      effect in the current period and prospectively.
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